PROCEEDINGS

OF

THE 9TH KNOWLEDGE CITIES WORLD SUMMIT

(KCWS 2016)

KNOWLEDGE FOR DEVELOPMENT

12-13 October 2016

Vienna, Austria

PROCEEDINGS OF THE 9TH KNOWLEDGE CITIES WORLD

SUMMIT

(KCWS 2016)

Editors:

Tan Yigitcanlar, Günter Koch, Andreas Brandner

Publisher:

Knowledge Management Austria, World Capital Institute & Queensland University of

Technology

Copyright: The Authors, 2016. All Rights Reserved.

No reproduction, copy or transmission may be made without written permission from the individual

authors.

Papers have been double-blind peer reviewed before final submission to the conference.

Many thanks to the reviewers who helped ensure the quality of the full papers.

ISBN: 978-1-925553-02-4

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PREFACE

Throughout the history, knowledge has always been a vital resource for creating and

sustaining a strong economy and society. In the era of knowledge economy, knowledge is

accorded particularly a pivotal role, not only in economic and societal growth, but also in

institutional and environmental development areas. In this era, that is upon us, managing

knowledge has also become a hot topic and tends to be the primary focus for many

companies that are seeking to gain competitive advantage in a highly globalised world. At

the same time, a considerable growth of interest among both policymakers and researchers

in knowledge management particularly with a special interest in urban aglomerations or in

other words city-regions are observed—such as knowledge city and regions. In a knowledge

city or a region the economic growth is ever more driven by the knowledge-based jobs and

‘knowledge for development’, which is the overall theme of our 2016 Knowledge Cities

World Summit.

The location of the 9th Knowledge Cities World Summit is particularly choosen

considering the strength of Vienna, Austria, receiver of the the Most Admired Knowledge

Cities (MAKCi) Award in 2015. The “Vienna Knowledge City” is a holistic concept of a City

that combines knowledge, art and crafts, intellectual heritage, innovative business and

quality of living. After painful destruction and loss of knowledge during two world wars,

Vienna regained its position as a world-leading Knowledge City at the heart of Europe and of

the United Nations.

We believe the Summit in Vieanna provided a perfect ambiance and athmosphere for the

leading scholars and professionals, along with government officials and students exchanging

their ideas and experiences, and thus making invaluable contributions to the literature as

well as multidisciplinary fields of knowledge city/region, knowledge-based (urban)

development, knowledge managements, and knowledge-based services.

This Summit proceedings is compiled in order to share the knowledge generated during

the Summit with wider academic and practitioner audiences. All of the full papers of this

proceeding have gone through a double-blind peer review process and been reviewed by

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our Summit International Editorial Review and Advisory Board members. We, chairs and

organisers of the summit, cordially thank the members of the Board for their diligent and

constructive work during the review process. We would also like to thank the organisers and

the Vienna City Government for providing the support for the Summit to happen.

We hope the papers in this proceeding will be useful for many and contribute to widening

of the knowledge community. We look forward to see you at the next Summit.

Be inspired and make a difference!

Tan Yigitcanlar Günter Koch Andreas Brandner

KCWS 2016 Chairs and Summit Proceeding Editors

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SUMMIT EXECUTIVES

Summit Chairs

Assoc. Prof. Tan Yigitcanlar, Queensland University of Technology, Australia,

tan.yigitcanlar@qut.edu.au

Prof. Günter Koch, Humboldt Cosmos Multiversity, Austria, guenterkochat@gmail.com

Dr. Andreas Brandner, Knowledge Management Austria, Austria, andreas.brandner@km-a.net

Keynote and Invited Speakers

Dr. Andreas Brandner, Knowledge Management Austria, Austria

Prof. Elias Carayannis, George Washington University, USA

Prof. Javier Carrillo, Tecnológico de Monterrey, Mexico

Prof. Richard Knight, City Development Associates, USA

Prof. Günter Koch, Humboldt Cosmos Multiversity, Austria

Prof. Mark Wilson, Michigan State University, USA

Assoc. Prof. Tan Yigitcanlar, Queensland University of Technology, Australia

International Scientific Committee

Al-Nuaim, Hana - King Abdulaziz University, SAU

Batra, Surinder - Institute of Management Technology, IND

Bennet, Alex - Mountain Quest Institute, USA

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Bulu, Melih - Istanbul Sehir University , TUR

Carrillo, Javier - Tecnologico de Monterrey, MEX

Chatzkel, Jay - Progressive Practices, USA

Durmaz, Bahar – Izmir Economy University, TUR

Edvardsson, Ingi Runar - University of Iceland, ICE

Edvinsson, Leif - UNIC Stockholm, SWE

Fachinelli, Ana Christina - University of Caxias do Sul, BRA

Forbes, Dean - Flinders University, AUS

Garcia, Blanca - Northern Borderlands Research College, MEX

Garner, Cathy - Knowledge Economy Innovations Manchester, UK

Goonetilleke, Ashantha - Queensland University of Technology, AUS

Hu, Richard - Universtity of Canberra, AUS

Hu, Tai-Shan - Chung Hua University, TWN

Huggins, Robert - Cardiff University, UK

Husted, Kenneth - University of Auckland, NZL

Ingallina, Patrizia - University de Lille, FRA

Inkinen, Tommi - University of Helsinki, FIN

Komninos, Nicos - Aristotle University of Thessaloniki, GRE

Krigul, Merle - Estonian Business School, EST

Kunzmann, Klaus - Technical University of Dortmund, GER

Laihonen, Harri - Tampere University of Technology, FIN

Lee, Sang-Ho - Hanbat National University, KOR

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Leem, Youn-Taik - Hanbat National University, KOR

Liebowitz, Jay - University of Maryland, USA

Lin, Carol Yen-Yun - National Chengchi University, TPE

Lönnqvist, Antti – Tampere University of Technology, FIN

José M. Viedma Marti - Polytechnic University of Catalonia, ES

Perry, Beth - University of Salford, UK

Waltraut Ritter - Knowledge Dialogues, HK

Schiuma, Giovanni - University of Basilicata. ITA

Searle, Glen - University of Queensland, AUS

Tremblay, Remy, TELUQ-University of Quebec, CAN

Van Wezemael, Joris - University of Fribourg, SUI

Velibeyoglu, Koray - Izmir Institute of Technology, TUR

Wang Dong - Harbin Institute of Technology, CHN

Yun, Joseph - Daegu Gyeongbuk Institute of Science and Technology, KOR

Zolnik, Edmund - George Mason University, USA

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TABLE OF CONTENTS

PREFACE ............................................................................................................................................................................... 1

SUMMIT EXECUTIVES ..................................................................................................................................................... 3

TABLE OF CONTENTS ..................................................................................................................................................... 6

PEER-REVIEWED PAPERS ............................................................................................................................................ 7

KNOWLEDGE-BASED CITY DEVELOPMENT ......................................................................................................... 8

MEASURING THE CAPITAL SYSTEMS CATEGORIES: A PERCEPTION OF AN INTEGRATED VALUE SYSTEM OF SOCIAL LIFE FOR KNOWLEDGE-BASED DEVELOPMENT .................................................... 25

SITE SELECTION ACCORDING TO LIFE CYCLES IN AGGLOMERATION AREAS: A DYNAMIC AND INTERDISCIPLINARY LOCATION ANALYSIS OF THE FOUR-COUNTRY-REGION LAKE CONSTANCE-ALPINE RHINE VALLEY .................................................................................................................... 41

LESSONS LEARNT FROM THE FASHION INDUSTRY CLUSTERS: SPONTANEITY OR PLANNING . 70

PLACE MANAGEMENT OF A CREATIVE CITY: THE CASE OF IZMIR.......................................................... 87

ICT-USE VARIABLES AND KNOWLEDGE-BASED EUROPEAN CITIES.................................................... 112

THE KNOWLEDGE-BASED DEVELOPMENT FROM THE CITIZEN PERSPECTIVE: A STUDY ON KNOWLEDGE CITIZENSHIP AND PERSONALITY OF CITIES IN SOUTHERN BRAZIL ...................... 127

CAPITAL SYSTEMS, KNOWLEDGE CITIZENSHIP, AND PERSONAL KNOWLEDGE-BASED DEVELOPMENT: VARIOUS DIMENSIONS OF A SOCIAL INNOVATION ECOSYSTEM ....................... 148

KNOWLEDGE, PATENTS AND SOCIAL POLICY: WHAT KEEPS EUROPE REALLY TOGETHER? .. 174

VIABLE KNOWLEDGE SYSTEMS: APPLIED CYBERNETICS TO KNOWLEDGE INTENSIVE ORGANIZATIONS - RESEARCH PROPOSAL ....................................................................................................... 195

A CONCEPTUAL FRAMEWORK FOR TEHRAN KNOWLEDGE CITY: EXTERACTING URGENT KNOWLEDGE NEEDS .................................................................................................................................................. 224

MONTERREY AS KNOWLEDGE CITY: CHALLENGES, EXPERIENCES AND BEST PRACTICES IN LATIN AMERICA ........................................................................................................................................................... 243

NEXT SUMMIT INFORMATION .............................................................................................................................. 269

KCWS 2017 ..................................................................................................................................................................... 270

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PEER-REVIEWED PAPERS

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KNOWLEDGE-BASED CITY DEVELOPMENT

Richard Knight, City Development Associates, USA, rvknight@gmail.com

Twenty two years ago, I had the good fortune of being invited to implement, what was, at

the time, a new approach to city development, an approach focusing on the role of

knowledge and enhancing the city’s knowledge cultures.1 There could not have been a

better place or more propitious time to have undertaken what, looking back, was a

breakthrough study of knowledge-based city development. Unfortunately, the study, like

much of my work, was not published and is little known. Having given up my academic base

in order to be able to implement the approach in different cities, there was little incentive to

publish.2 So, when I learned that the 2016 Knowledge City World Summit was to be held in

Vienna, I emailed Tan (Professor Yigitcanlar) to tell him about the study and suggested that

the study reports and possibly video tapes of the dialogue seminars be made available to the

conferees. Surprisingly, the organizers responded by inviting me to address the conference,

for which I am very honored.

1 The project was commissioned by Hannis Swoboda then Municipal Councillor, Regional Minister,

responsible for urban development, planning, transport and external relations 1986 to 1996,

and now a member of the European Parliament. All the dialogue seminars were video taped

and a short video summary was made titled “Who Met Whom”. The final report in two

volumes: “Enhancing the Cultures That Produce Knowledge” which presents the rationale,

describes the entire approach and summarizes the findings; and a companion volume

“Briefings and Transcripts”—with summaries of interviews (bios and issues raised by each of

the 55 participants).

2 In 1993, after presenting the approach at a conference in Paris, someone commented that “the

approach obviously works in practice, the question is will it work in theory?” The Centre

National de la Recherche Scientifique, Programme Interdisciplinaire de Recherche sur la Ville

CNRS/PIR-ville then awarded me a Poste Rouge to address the matter which resulted in an

article published in Urban Studies. "Knowledge-based Development: Policy and Planning

Implications for Cities" Urban Studies Vol.32/ 2. 1995.

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They suggested that, given my long experience in the field, I could provide an overview

for the conference theme - Knowledge for Development. The request sounded reasonable, I

liked the idea of revisiting Vienna, so I agreed, but soon came to realize that I was not up to

the challenge. There’s so much happening in this field of knowledge-based development. So,

instead of providing an overview, I decided to focus my comments on my efforts to get the

ball rolling, on why city development, and on the Vienna project. How it came about, why it

was so successful and on what was learned from the process. I am particularly grateful for

having been invited to attend this conference and being able to hear the papers, meet the

participants and, to have another chance to walk around this historic and endearing city.

Vienna is truly “a work of art”.3

When Vienna commissioned the study twenty two years ago, the idea of knowledge-

based development was still in its formative stage; although the need for a new approach

had become clear to me in the mid 70s. I spent the 80s, making the case that the challenge

of city development and design called for a new discipline.4 It was not until the 90s that

opportunity was presented to actually formulate and implement an approach. The need

became clear while undertaking an in-depth study of the nature of changes occurring in the

economy of Cleveland, Ohio, an advanced industrial metropolis.5 Up to that point I had

approached city development in terms of changes occurring in their industrial structure and

3 Olsen, D (1986) The City as a Work of Art: London, Paris, Vienna, Yale University Press, New Haven.

4 Knight, R.V(1982) ’City Development in Advanced Industrial Societies’ in Gappert, G. and Knight, R.V

Cities in the 21st Century Sage Publications, London.

5 Knight, R.V (1976) Role of Corporate Headquarters and Related Auxiliary Activities in the

Development of the Cleveland Region, An analysis of 41 Fortune 1000 corporations based in

Cleveland funded by The Cleveland Foundation, 1974-1976, Cleveland, Ohio.

Knight, R.V (1977) Cleveland Economy in Transition: Implications for the Future, Regional

Development Program, Cleveland State University, Cleveland, Ohio.

Knight, R.V (1981) The Region's Economy: Transition to What? Regional Development

Program, Cleveland State University, Cleveland, Ohio.

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the shift from manufacturing activities to producer services6. Back in the 70s, industrial cities

were seen as being in decline due to the exodus of manufacturing jobs; non- production jobs

and jobs in offices which were continuing to increase were not seen as creating wealth but

rather as dependent on wealth created in factories.

Urban policies were reactive in nature, focusing primarily on bringing factory jobs back to

cities. Riots had broken out in many industrial cities, and in1973, when New York became

the first major city to face bankruptcy the very future of cities began to be questioned. Cities

in advanced industrial nations were seen as being shaped by market and technological

forces, forces they were unable to change or turn to their advantage. Cities in the so called

‘rust belt’ were seen as becoming dysfunctional, their infrastructure obsolete, and their

workforce redundant. Comedians were joking about Cleveland on national TV making

comments like “Cleveland is like the Titanic but it has a better orchestra” and “Would the

last person to leave please turn out the lights. Cities in newly industrializing nations were

also seen as being problematic, their growth also uncontrollable, and Mega-cities the

inevitable product of global market forces.

Cities and urban policies were defined primarily in terms of their problems. There was

another story that was not being told, one that I was able to verify while in Cleveland.

Cleveland was not dying; it was in transition from a temporary encampment of

manufacturers and a mill-town to new type of city, to an advanced industrial metropolis.7

Forty-one multinational corporations that had grown up in Cleveland remained

headquartered there, the third largest concentration of corporate headquarters in the US. 6 Stanback,T S and Knight, R V (1970) The Metropolitan Economy: The Process of Employment

Expansion, Columbia University Press, New York.

Knight, R V (1973) Employment Expansion and Metropolitan Trade, Praeger Publications, New

York.

Stanback,T S and Knight, R V (1976) Suburbanization and the City, Allenheld Osmun, Montclair,

NJ.

7 Knight R.V (1986) ”The Advanced Industrial Metropolis: A New Type of World City.” in Hans-Jürgen

Ewers H. J, Goddard, J. B, Horst Matzerath, H (Eds.): The Future of the Metropolis.

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Although manufacturing jobs were in steep decline locally, their production facilities were

growing worldwide and their value chains were becoming global; their knowledge-base was

expanding in Cleveland. The expansion of jobs in the knowledge sector more than offset the

decline of jobs in manufacturing.

Interviews with the CEOs and other principal actors yielded important insights into the

nature of changes and detailed data provided by the companies enabled us to document the

changes. However, the prognosis that Cleveland was being transformed into a new type of

world city was not well received locally. Cleveland was a proud working class, blue collar

town; the corporations were seen as elitist, uncaring, socially irresponsible. The

conventional wisdom at the time was that wealth was created in factories. The mayor, a

populist, offered to help the corporations pack their bags, thinking that if they left, the

factories would return. In 1978, Cleveland defaulted on its debts.

It then took me another decade to formalize an approach and to elaborate a conceptual

framework for city development that explicitly accounted for the role knowledge plays in

wealth creation.8 The conceptual framework was first outlined in Cities in a Global Society

and published in 1989 and the opportunity to elaborate the approach occurred later that

year after I moved to Amsterdam.

While preparing this talk, I found myself wondering why, given the role knowledge has

played in human development and in the development of cities over the millennia, had the

idea of “Knowledge-based Development” and the “Knowledge City” not been conceptualized

until the 21st century?9 Clearly, knowledge has been a critical factor ever since the cognitive

revolution kickstarted history some 70,000 years ago and cities began forming some 10,000

8 The reason I began using the idea of knowledge-based city development was to encompass all of a

city’s knowledge-base founded both on the technological and scientific order and on the

moral order, i.e., including knowledge-intensive activities in the industrial sector with

knowledge-intensive activities in Producer and Professional Business Services Sector. Later,

the concept was broadened to include all types of knowledge cultures.

9 Knowledge-based development, like gravity, has always been a force. Now the concept has been

coined, perhaps theories can be developed to increase our understanding of its power.

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years ago.10 Why then, given the role cities have played in advancing knowledge and

civilization, was the idea of a “Knowledge City” not formulated earlier?

Primarily, I think it has to do with the way cities are defined, when and who is defining

them and the way their development is conceptualized. Historians, archeologists, political

scientists, sociologists, urbanists, and anthropologists all have different takes. Historically,

cities were thought of primarily in terms of their role as a polity, as the center of a

civilization. Early settlements were considered to have been cities once their population was

sufficiently large and had the competences and power required to shape their own destiny.

10,000 years ago, in 8,500 BC, the largest human settlements were villages like Jericho which

contained a few hundred individuals. By the 5th century, Athens had around 140,000.

Athens certainly was a knowledge city.11 Edith Hamilton refers to Athens as a “thinking

city” and to Athenians as “independent thinkers.” “They knew what freedom means. They

knew—not that they were free because their country was free, but that their country was

free because they were free.”12 More recently cities have been thought of primarily in terms

of the size of their population. By the 1st century AD, Rome had a million. By the 19th

century, London, had over 6 million, and by 1930, New York had over 10 million inhabitants,

becoming the first mega-city. And the number and size of mega-cities is increasing; in 1950

there were 11 mega-cities, now there are 30, the largest having a population of over 37

million.

10 Harari, Y. S (2015) A Brief History of Humankind Harper Collins, New York

11 Theory of knowledge dates back to Plato’s classical definition of knowledge which specifies that a

statement must meet three criteria in order to be considered knowledge: it must be justified,

true, and believed. In Plato's Theaetetus, Socrates and Theaetetus discuss three definitions

of knowledge: knowledge as nothing but perception, knowledge as true judgment, and,

knowledge as a true judgment with an account.

12 “Aristotle said the city was built first for safety, but then that men might discover and lead the

good life.”

Hamilton, E (1960) ‘The Lessons of the Past’ (P. 76) in Thruelsen, R. and Kobler, J (Eds): Adventures of

the Mind Alfred Knopf, New York

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Size now dominates other considerations and, with globalization and the centralization of

power in nation states, and multi-national corporations, many doubt whether cities have

sufficient power to shape their own development. As E F Schumacher pointed out over 30

years ago in Small Is Beautiful, the growth of mega-cities represents more the breakdown of

the traditional order than the orderly extension of city structures. He reasoned “that

successful industrial development destroys the economic structure of the hinterland and the

hinterland takes revenge by mass migration into the cities, poisoning them and making them

utterly unmanageable.” 13

Words are important; the idea of a “Knowledge City” helps to refocus attention on the

city’s historic role as a civilizing force. Size is no longer a critical factor. There are many

historic cities that are still able to shape their destiny without becoming larger and we can

learn a lot from them.14 The knowledge base is the new economic and institutional base of

cities. Knowledge resources are strategic, the market for knowledge is now global, and their

presence provides cities with the potential of being able to shape their own destiny.

Although the emphasis has been placed primarily on scientific and universal knowledge

there are many types of knowledge that are still in their early stages of being valorized

globally or have yet to be considered as a resource. I’m referring here particularly to the

more traditional and local knowledges. Valorizing knowledge is becoming ever more feasible

as the Internet and the Cloud serve to reduce the costs of distributing and accessing

knowledge.

I think the principal reasons why the idea of knowledge-based development was not

formulated earlier is that with the advent of industrialization, wealth came to be seen as

being created primarily by manufactures and by manual laborers. Adam Smith may have

overstated the case when, in The Wealth of Nations (1776) he made the distinction between 13 Schumacher, E. F (1973) Small is Beautiful cited in Knight R. V. and Gappert, G. (Eds.) (1989) Cities

in a Global Society Praeger, London

14 Florence, for example, has been very successful in this regard by employing aesthetic zoning

regulations, so have many cities in Switzerland such as Basil and Berne. Williamsburg, Virginia

has, with considerable philanthropic foundation support, been able to sustain its original

Colonial knowledge base and ambiance.

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two types of labor, productive labor found in manufacturing and non-productive labor found

in services. He argued that “services generally perish in the very instant of their

performance, and seldom leave any trace or value behind them.” To emphasize the point he

added, “The labour of some of the most respectable orders in the society (referring to

lawyers, doctors, clergy, accountants, generals, philosophers) is, like that of menial servants,

unproductive of any value, and does not fix or realize itself in any permanent subject.”

Smith’s argument still reigned in the 70s. Executives I interviewed both in corporations and

in major producer service firms continued to view knowledge-intensive services such as

legal, accounting, advertizing, finance and insurance, as an overhead costs rather than as

adding value.

The idea of the “Knowledge Economy” and that knowledge, like land, labor and capital, is

a factor of production is still of recent vintage. The idea that knowledge is an economic

resource was first introduced in 1962 by Fritz Machlup and the idea of a “Knowledge

Worker” popularized a few years later in 1969 by Peter Drucker.15 WIPO, the World

Intellectual Property Organization, was organized in1967. The World Wide Web formed in

1990, Google search in 1998 and Watson, in 2013.

The debate over how wealth is created is an ongoing one; economic history is replete

with battles fought over how wealth is created. Earlier battles were fought over interest paid

on loans and profits derived from the exchange of goods. The biblical texts frown on selling

knowledge.16 For reasons of practicability, each factor of production has to be incorporated

into political thought. The same holds for knowledge if it is to be recognized as an economic

resource.17 Smith’s argument that only production workers in manufacturing created value 15Machlup F (1962) The Production and Distribution of Knowledge Princeton University Press,

Princeton. Drucker, P; (1969) The Age of Discontinuity: guidelines to our changing society

Harper & Row, New York

16 Proverbs 23:23 Buy the truth and do not sell it; get wisdom, discipline, and understanding. Acts 17-

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17 There are many ways to define knowledge. One way of defining knowledge operationally which I

found most helpful was to think of knowledge as “truth in judgment”, a definition I came

across while browsing through a medieval encyclopedia. This aspect of knowledge was well

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was his way of challenging the powerful vested interests of the day, the Physiocrats who

believed that all value was created from the value of land, from agriculture and land

development. The idea that workers in manufacturing created wealth and should be

compensated was strongly resisted by those whose incomes were based on land holdings or

trading privileges secured from the monarch. In the not so distant future knowledge workers

will resist being replaced by algorithms just as factory workers resist being replaced by

machines and robots. Determining what constitutes knowledge, its value and its

contribution to the wealth creation process will be highly contested.

Being a pioneer in the field of knowledge-based development, I faced the task of having

to argue that knowledge was a resource and having to overcome resistance to the idea that

knowledge creates wealth. The task became easier with the realization that knowledge is

produced by cultures; that in any given city there are many different types of knowledge

cultures, and there are individuals in each knowledge culture who understand the

importance of knowledge resources, the nature of their development and their

development potential.18 The challenge of defining the city’s knowledge-base involved

therefore: identifying major types of knowledge cultures centered in the city; and key actors

in each who understood a particular type of knowledge, and to have them define their

knowledge-base and make an assessment of the development potential of their knowledge

illustrated by Fritz Machlup (1962). He quotes a Nobel Laureate physician when giving a

commencement address to physicians graduating from Johns Hopkins Medical School. After

complementing the graduates on their achievement of having graduated from one of the top

medical schools, on being very well informed and ready to practice, the noted physician

added “that they will now to face two problems: First, only half of what they had learned was

true; Secondly, it is not known which half is true.” Now, when thinking about knowledge-

based development, I focus more on the intangible aspects of knowledge production, the

judgment, experience, networking required, and to the identifying, recruiting, and

developing talent so that knowledge can be passed on to succeeding generations.

18 Concerning the differences between Traditional and Scientific cultures, see Snow, C. P (1959) The

Two Cultures and The Scientific Revolution. Cambridge University Press, London.

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resources. In this way a city could become informed about its knowledge base and plot a

course for the ‘Knowledge City’.

The opportunity to implement this approach was provided by the City of Amsterdam. In

1989, while a visiting scholar at the University of Amsterdam, I gave a seminar and public

lecture on knowledge-based city development and the city responded by commissioning a

pre-study to elaborate how such an approach could be operationalized.19 Amsterdam was

an excellent place to start; several types of knowledge cultures are centered there and

principal actors in each agreed to be interviewed about the development potential of their

knowledge resources—how they could be defined and assessed and whether the city had a

role to play in their valorization (transforming knowledge resources into local economic,

social and cultural development). The response was very positive, an approach was outlined,

a way of financing implementation was identified, but the actual study did not go ahead.

The problem was that city did not want the study directed by an outsider, the fear being

that, if an outsider conducted the study, their secrets would become known. Amsterdam,

having evolved as a mercantile and financial center, was by its nature very secretive about

its activities. Nevertheless, some progress was made: the municipality created a

“Knowledge-Infrastructure Commission” chaired by Dr. Gevers, Rector Magnificus of the

University of Amsterdam, to consider the situation; and the Amsterdam Chamber of

Commerce decided to address one of the main concerns identified during the pre-study.

That was, the lack of synergy among different types of knowledge cultures. They established

knowledge circles for each of the principal types of knowledge (territorial clusters of related

knowledge-based activities) that had been identified in the pre-study to serve as platforms

where issues and concerns specific to each type of knowledge could be considered.20 A

limited but positive step towards increasing synergy.

19 City of Amsterdam (May, 1990) Amsterdam Knowledge City, Pre-study prepared for the City.

20 Territorial clusters of related knowledge cultures: 1. Headquarters of IGOs, MNC, NGOs,

International Law, area studies institutes and linkages to the Hague, Leiden; 2. Medical,

biomedical, and chemical, especially quaternary health care, related medical instruments,

supplies and services; 3. Logistics and European development (East and West), with an

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Fortunately, the TNO, (Dutch Organization for Applied Scientific Research) also became

interested and sponsored a prototype study of KBCD in Delft, a small historic working class

city (population of about 80,000 some 100 km from Amsterdam) where many scientific and

knowledge-based institutions are based.21 Again, one of the major findings was the lack of

synergy among different organizations based there; another was that the city had become

uncoupled from its knowledge sector. Delft’s residents were commuting out to jobs outside

Delft, while those employed in the knowledge sector were commuting in from Rotterdam,

The Hague, Amsterdam and other towns in the Randstad Region. Consequently, although

Delft’s knowledge sector was comprised of several different types of knowledge resources

and, although they were in close proximity, there was little propinquity.

Proximity without propinquity was again identified as a major issue. As knowledge

resources develop and become more specialized, they become more integrated into

national and international networks, and, while their global linkages become stronger, their

local links atrophy and, consequently, they become increasingly isolated locally. Improving

communications among these islands of excellence and re-weaving local knowledge

resources back into the civic society must be the responsibility of the locality. Delft published

the study and began promoting Delft as a Knowledge City.22 Delft City Council adopted a

main strategy to further develop as a knowledge city, established a new department for

emphasis on air transportation and distribution of high value-added products in the

Randstad, links to Rotterdam; 4. International Financial Center and related producer services,

e.g., investment services, insurance, public relations, accounting, management consulti9ng,

marketing research and information technology; 5.Cultural, creative and expressive arts,

including performing and visual arts, museums, theaters, design, graphics, advertising, audio-

visual media, film, fashion, specialty retailing, and galleries; 6. Publishing, linguistics, logic,

artificial intelligence, mathematics and information sciences, linkages to Haarlem and Leiden;

7. Science, research & development centers, engineering, and planning, emphasizing linkages

to Delft, Utrecht, Eindhoven and Twente.

21 Knight, R. V (April 1989) Institute v. Ruimtelijke Organisatie, TNO, (Dutch Organization for Applied

Scientific Research) Delft, Seminar for staff.

22City of Delft, (Oct. 1990) Delft Kennisstad, Prototype study of Knowledge-based development.

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knowledge-based development and a $3 million fund; financing some 60 projects over the

next decade. As far as I know, Delft was the first city to call itself a ‘Knowledge City.’23 The

Delft story was also published by UNESCO.24 Sustainable Development - Sustainable Cities"

International Social Sciences Journal, UNESCO, Feb.'93.

Fortunately, I was able to continue developing the approach because, at the time of the

Delft Study, the European Union was implementing the single market and concerns were

being raised about how European Cities would be impacted. The European Union organized

a comprehensive study The Future of European Cities: The Role of Science and Technology,

and the Delft model was incorporated as part of the study. Twenty major cities were queried

about a range of topics including their knowledge-base, what types of knowledge were most

important to their comparative advantage, which ones were deficient, etc. Again, the lack of

synergy among different types of knowledge was citied as a key issue of concern. Five in-

depth studies of knowledge-based development were co-sponsored by the mayors of

Barcelona, Milan, Genoa, Lille and Lyon and the findings were published as Volume II: Cities

as Loci of Knowledge.25 A great deal was learned about the nature of knowledge-based

development in each place, how their knowledge cultures had been established, how they

had evolved over the centuries and the particular nature of their knowledge resources.

Many of the knowledge cultures could be traced back to challenges the cities faced

centuries before. Amsterdam was trying to reinvigorate its role as an international financial

center which dates back to their having established the first bourse and to financing joint

ventures such as the Dutch East India Company. Delft’s knowledge of hydraulics, water and

23 In 2013 the Randstad was designated a co-location centre of Knowledge and Innovation

Community (KIC) for Climate Change Mitigation and Adaptation by The European Institute of

Innovation and Technology (EIT).

24 Knight, R.V (February 1993) ‘Sustainable Development - Sustainable Cities’ in International Social

Sciences Journal, UNESCO.

25 FAST/MONITOR, DG12, EU: The Future of European Cities: The Role of Science and Technology.

Part I, Synthesis, by Drewett R, Knight R. and Schubert U, May, 1992,

Part II, Cities as Loci of Knowledge-based Development, Knight, R. V., August 28, 1992

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soils management derived from Dutch efforts to reclaim and protect land from the North

Sea. With climate warming and rising oceans, the knowledge it has acquired is now finding

new applications. In Lyon, its medical and biochemical complex dates back to Pasteur’s study

of diseases affecting silkworms and threatening its silk industry. In 1985, the International

Agency for Research on Cancer (IARC) was established there. Lyon, world renown for its

culinary arts, also became the home of the Grande Ecole Nationale Supérieure des Arts

Culinaires.26 Barcelona, whose development had been greatly suppressed during the Franco

era, was jump starting its economy by focusing on telecommunications, hosting the Olympic

Games, and promoting tourism. The mayor, Dr. Joan Clos, credits our study for having made

them aware of the new challenges posed by the knowledge society and for focusing their

attention on the importance of their knowledge resources.27 Barcelona launched a project

called City of Knowledge; culture was viewed as being the “motor of a knowledge city.”

Simply by asking the right questions about knowledge resources, these studies of

knowledge-based city development spurred a great deal of interest in the potential role that

knowledge can play in a city’s development.

The principal finding from all these studies was that, although all the cities were well

endowed with knowledge resources, the cities lacked synergy among different types of

knowledge and some types of knowledge were not being valorized. Investments were being

made to attract high-tech industries, establish technopoles, science parks and transfer

points but they lacked an overall strategy focusing on their knowledge resources.

Consequently, their development potential was not being fully realized; some types of

knowledge were not recognized as a resource, while others were being valorized elsewhere,

rather than locally.

26 Lyon, aspiring to attract corporations and have them base their European operations there,

intentionally downplayed their culinary resources. It was only after the Japanese who,

appreciating French culinary arts, established a school in Lyon to train Japanese chefs that

France’s minister of culture, Jacques Lang decided to establish the school in response to

global demand.

27 Dr. Joan Clos, Mayor of Barcelona until 2010 when he became Executive Director of the United

Nations Human Settlements Programme (UN-Habitat).

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The Vienna study was undertaken at a very propitious time; a lot of experience had been

gained from the previous case studies. Austria was applying for membership in the European

Union and interested in partnering with EU projects. Several conferences were held to

inform the public about the soon to be held referendum including one on the impact of the

single market on cities. Ricardo Petrella, Director, EU-DG 7, Science and Technology,

presented findings from our study of knowledge-based development spiking the interest of

the mayor’s planning office. A workshop, hosted by the Institute for Advanced Studies, was

then organized so research institutes based in Vienna could critique the approach, following

which the city requested a detailed proposal that was quickly funded.28

The process took over a year to organize and was far more successful than anticipated.

The reason was that, halfway through the program, the participants expressed an interest in

changing the approach. Instead of being presented with a synthesis of the findings as initially

planned, they thought that a meeting where all the participants could exchange their

thoughts and concerns directly would be more productive. Forty-eight different types of

knowledges were identified and Fifty-seven principal actors were interviewed.29 The

interviews were qualitative and open ended. They were recorded and transcribed, and

summaries were prepared and reviewed by each person interviewed. These briefs were later

distributed to all the participants along with background papers and the rules for dialogue

prior to the dialogue seminars. These are published as a companion volume to the final

report.30

A content analysis of the interviews helped identify five principle themes and all the

participants were invited to prepare the themes for dialogue. Five focus groups were formed

and tasked with presenting a theme at the dialogue seminar. The themes they presented

28 Knight, R. and Leitner, K (April 1993) Vienna’s Knowledge Base: The Potential of Vienna’s

Knowledge Base for City Development. Stadtplanung Wien, Werkstattberichte Nr. 4.

Documentation of the Workshop on 21 April, 1993 at Institut fur Hohere Studien, Wien.

29 A steering committee was formed to suggest and select the types of knowledge cultures that

should be included and persons most invested in enhancing each type of knowledge culture.

30 See footnote 1 above.

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were: Towards a More Tolerant City; The Changing Nature of Wealth Creation; The Changing

Nature of Work and Workplace; Internationalization of the city;31 and, Strengthening

Knowledge Cultures.32 The five dialogue seminars took place in the Rathaus (City Hall), June

29th 1994 from noon to 6pm.

The dialogues were successful beyond expectations. The participants were totally

engaged. In fact, bringing the seminars to closure was not easy. The meeting only ended

because another meeting was scheduled for the hall. They greatly appreciated having an

opportunity to share their experiences and to hear other participants think about issues.

Contacts and relationships were initiated and renewed that may not have otherwise

occurred. Since the use of dialogue seminars had not been anticipated, no plans had been

made for their continuation. However, since the dialogues were not open to the public, they

were video recorded so they could be watched by anyone interested. This was fortunate:

when the participants viewed a video of excerpts from the dialogue at a follow-up meeting,

someone commented that “We knew the dialogue was good at the time but we did not

realize how good it was until we saw the video.” They added that “close-ups help to capture

the full significance of what is being said and of the moment and context in which it is

expressed.”

The Vienna study demonstrated that dialogue seminars, when professionally organized,

can serve as a platform for articulating the collective intentions and concerns of the

knowledge sector. They can and should also be viewed as an aspect of knowledge-based

development, as serving as a catalyst. Video taping the dialogues has the advantage that

anyone concerned about the nature of knowledge-based development can, by watching the

tapes, learn about the nature of knowledge based development in the city at that point in

time. Dialogue seminars provide a way to taking the pulse of the city. When continued, they

can be used to compare changes in the way issues and concerns are being framed and the

way thinking is changing. And, if conducted in other cities, dialogues in different cities can be

31 Communication, Identity, Science, Research & Technology and economic integration,

32 Identifying, assessing knowledge resources; a policy framework for knowledge-based

development.

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compared to see how different cities think about knowledge based development. Creating

an archive adds to their value. Revisiting earlier dialogues and reflecting on how awareness,

perceptions and concerns are changing can provide insights into the nature of change.

Reflection, as M. Merleau-Ponty points out, is a way of elucidating the unreflective view

which it supersedes.33

Once proven to be productive, dialogue seminars should be institutionalized so the

participants can continue their dialogue. Follow-up interviews would help to redefine and

identify new issues of concern and additional knowledge cultures that need to be included.

Although a great deal of work goes into organizing dialogue seminars initially the costs of

continuing them are minimal. Most of the costs are actually borne by the participants

themselves; they would not agree to continue to give their valuable time unless they

benefited. There was a general consensus that such a mechanism needed to be established

and to be ongoing. Those conducting the preparatory interviews have a unique opportunity

to learn about their city, how and why all the different cultures producing knowledge came

to be established, how they evolved, how, where, and in what ways their knowledge is being

valorized and advanced today, and what challenges they face. That information, once

captured, needs to be shared, and made available to interested parties. Citizens need to

know about knowledge resources in their city and how to access them. (I personally feel

extremely privileged to have been given the opportunity to listen to the cities that I have

studied; I know of no better way to get to know a city)

Before the dialogue, there was a great deal of skepticism about the feasibility of the

approach. Many questions had to be addressed: How can you study knowledge, knowledge

is in the mind? Knowledge is an intangible, you can’t measure knowledge! Knowledge does

not create wealth, knowledge is a cost factor! What interests could we have in common with

all those other types of knowledge cultures? And, one of the most challenging, Knowledge is

in the air!34 Having conducted a few hundred interviews in different types of cities, in 33 M. Merleau-Ponty, (1962) Phenomenology of Perception. Humanities Press, New York

34 This was before the internet. Now, with so much data in the cloud, this expression has taken on a

different meaning. Today, I would argue that knowledge is also embodied in the manmade

environment, in the way space is shaped and buildings are designed- in the values expressed,

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various types of organizations, and in different countries, I had a great deal of experience to

draw from and was able to overcome their skepticism and bring them into the dialogue.

The dialogue seminars serve a dual purpose: as a way the city (administration and

citizens) can learn about the nature of its development; and, as a catalyst for knowledge-

based development.35 Bringing different knowledges together into a dialogue so they can

interact also serves to democratize and humanize knowledge. People take different things

from a dialogue, dialogues facilitates learning, particularly learning about a city and the

challenges it faces. As Socrates stated, dialogue is born out of the inspiration of the moment.

The moment of dialogue is the eternal ‘now’ and it all hinges on the appropriateness of what

is said. Dialogue is unique, not possible to reproduce. Francis Bacon, when pointing out its

importance in medicine and education, saw dialogue as a means of breaking the contract of

error. Dialogue is a process. A dialogue is pure movement; it has no end. What is important

is not, what “is”, but what “will be”. The truth grows in the process; it is never to be found at

the point of departure. A dialogue has no pre-established goal; it builds up and breaks into

pieces again and again. Participants must feel comfortable continuously reformulating the

questions and redefining the issues with an open exchange of ideas, and with creative and

intuitive thinking, as well as with rationalistic thinking. Being well informed is not sufficient;

participants must be willing to speak from the heart. That is what makes a dialogue

authentic.36

in aesthetics. Athenians understood the importance of aesthetics: Plato argued that, “art is

not an ornamental addition to life, not a pleasure, a solace, or an amusement… Art is an

organ of human life transmitting man’s reasonable perception into feeling. Not only is art a

process co-equally important with science for the life and progress of mankind, but it has the

unique function of uniting men in love of each other and of life itself. And, I would add,

making a place endearing and loved.

35Following the Vienna project, the author organized Dialogue seminars for the Mayor of Genoa,

Adriano Sansa, on Accessibility and Mobility in the City and Knowledge-based Development.

36 Bo Goranzon and Magnus Florin (Eds.) (1991) Dialogue and Technology: Art and Knowledge.

Springer-Verlag, London.

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The shift towards a more open and knowledge-based society is changing the nature of

the development challenge and the role of cities. Development is becoming increasingly

knowledge-based. The challenge for the city is to nurture and enhance the cultures that

produce knowledge by creating an environment where all types of knowledge resources are

valued and by creating conditions conducive to their valorization. In order to ensure that

their knowledge resources are securely anchored and passed on to succeeding generations,

the city also has to be able to identify, develop, attract, and retain talent.37 Listening to the

dialogue seminars in Vienna convinces me that cities do have the power required to shape

their destiny; their power derives from the integrity of knowledge they produce and on the

livability of the city and the quality of life they offer.38 This is the cities role as a civilizing

force.

37 Knight,R.V (1995) ‘Knowledge-based Development: Policy and Planning Implications for Cities’

Urban Studies Vol.32/ 2.

38And as technology conquers distance, the city as a value will become stronger. So will the global

village. There will be many choices—to live in a village connected to a virtual world or, live in

a city in direct contact with civilization.

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MEASURING THE CAPITAL SYSTEMS CATEGORIES: A

PERCEPTION OF AN INTEGRATED VALUE SYSTEM OF SOCIAL

LIFE FOR KNOWLEDGE-BASED DEVELOPMENT

Ana Cristina Fachinelli, University of Caxias do Sul, Brazil, afchinelli@gmail.com

Cintia Paese Giacomello, University of Caxias do Sul, Brazil, cpaese1@ucs.br

Fabiano Larentis, University of Caxias do Sul, Brazil, flarenti@ucs.br

Fernanda Pauletto D'Arrigo, University of Caxias do Sul, Brazil,

fernanda.darrigo@yahoo.com.br

ABSTRACT

Purpose: The objective of this study was to construct and validate a scale in order to

measure the citizenship perception about the inherent concepts of each individual capital

system category.

Scope: The generic capitals system is a value-based third generation knowledge

management formal system structured by categories which allows to identify the

relationships between the set of elements that create value when interacts as a system.

Method: A deep literature review was carried out in order to identify the theoretical

constructs underlying the capital system categories for subsequent construction of a scale to

measure these constructs. The data was collected with a sample of 300 University students

distributed over 26 cities in the south of Brazil.

Results: To measure the perception about an integrated value perspective of the social

life from the point of view of citizenship is possible. Statistical analysis showed that the scale

succeeded in measuring the constructs as the study attempted to show.

Recommendations: Future research may compare the results obtained with the

implementation of the capital system taxonomy from the indicators of a particular city with

the perception of the citizens about the constructs that underlie the same capital system.

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Conclusions: The search for commonly accepted assessment methods and metrics as part

of the research agenda of knowledge cities may also consider the citizen’s perspective.

KEYWORDS

Capital System taxonomy; Knowledge Based Development; Knowledge Cities; Citizenship.

1. INTRODUCTION

The emergence of the knowledge society associated with the knowledge management

movements is part of the fundamental base of many of the key perspectives in the evolution

of the field of knowledge-based development. Carrillo classifies the evolution of knowledge

in relationship to development and growth in three generations resulting from the necessary

and sufficient conditions "for a knowledge events to occur: the knowledge object - that

which is known, knowledge agent - he or she knows, and knowledge content - axiological

and semiotic references providing value and meaning" (Carrillo, 1996, 1998). Within this

perspective the first generation is object-centred, the second-generation is agent-centred

and both represent a more instrumental and incremental approach. The third generation is

context-centred and relates more to a holistic and radical approach (Carrillo, 2014; Allee,

2002) and provides to the KBD economic relevance and cultural significance. "This applies

not only to the knowledge-intensive goods but to all forms of outputs and services in

knowledge societies.... KBD attempts to portray and develop social life from an integrated

value perspective, where all aspects relevant to libel and balanced living are given due

consideration”. The attention given to an integrated value perspective of the social life has

grown during the last years from the point of view of specialized researchers in the field of

KBD and some public regional as global agents. Nevertheless, the evidence that the value

dimensions indicated by the specialized studies are perceived the same way by the

citizenship are still in early stages and focused on the case study of meso and micro level. In

fact, Carrillo (2002) recognizes that the personal development is the “building block, or still

better, the living cell of knowledge-based organizational and social development”. This

recognition comes from "the identification of the developmental patterns of human

individuals and their relations to specific cultural settings" (Carrillo, 2002 p. 380) as also to

the studies of social integration (Garcia & Herrero, 2004). Recent studies have expressed

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interest for the characterization of the knowledge-citizen, considering the personal

knowledge based development competence and the social capital (Garcia & Martinez, 2015).

However, the assessment from the perspective of citizens about the constructs underlying

the capital system as a whole still requires further studies. On the other hand, the topic of

measurements of knowledge-based development has advanced in the construction of

commonly accepted assessment methods and metrics as part of the research agenda of

knowledge cities, as is the case of the capital system (Meza & Garza, 2012; Garcia, 2012; Leal

& Garcia, 2012; Garza, 2014). Thus the principal interest of our research is to evaluate the

perception of young citizens of the principle dimensions of the KBD, organized in the

categories of the capital system.

Assuming that the formal explicative models of knowledge-based development transit

between the instrumental and the strategic perspectives (Carrillo, 2014, Fachinelli at al.,

2015), we adopted the concept of capital system as a framework for the analysis of values

that are inherent in a society. With this, the objective of this study was to construct and

validate a scale that would allow measuring the perception of young citizens with regards to

concepts inherent to each category of the capitals that compose the capital systems. More

specifically we look to explore the relative dimensions of the sentiment of belonging and

social integration (Sander et al, 1999, Garcia & Herrero, 2004); the perception of the quality

of life (Diener et al., 1985); the distinctive and integrative identity (Carrilo & Guajardo,

2015); intelligence gathering and sense making (Olavarrieta & Carrillo, 2015); knowledge-

citizenship (Garcia & Martinez, 2015), human capital (Gil & Carrillo 2015; Marti 2001);

productive capital (Valerio, 2015), in the individual and the collective environment of

communities and cities where these students live.

2. THEORETICAL BACKGROUND

The capital system elicits a systemic assessment of a knowledge city’s capital base

(tangible and intangible) and its capacity to recombine knowledge in innovative ways of

development (Leal & Garcia, 2012). The concept of CS and experiences of knowledge cities

has been reported in some earlier works (Carrillo, 2002, 2004; Flores, 2006; González, 2011;

González & Carrillo, 2012; Garcia, 2012; Leal & Garcia, 2012, Fachinelli et al. 2013) as an

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analysis framework which makes possible to understand the spectrum of the values that a

society has access in order to develop (Carrilo et al. 2014). The systematization of

dimensions of tangible and non-tangible values in all economic activities of a community,

like a city or an organization, following the capital system, makes it possible to distinguish if

a society generates social dynamics which can be translated in sustainable values. The

generic capitals system (Carrillo, 2004) proposes eight different types of capital:

C1 identity capital

C2 intelligence capital

C3 financial capital

C4 relational capital

C5 human individual capital

C6 human collective capital

C7 instrumental-material capital

C8 instrumental-intangible capital.

The identity capital considers formal and informal elements that are distinctive in a

city, such as attractiveness factors and the sense of belonging (Fachinelli et al. 2013). The

identity capital relates to the capacity of the society to establish that what is distinctive and

singular as well as the integration of what is considered commonly accepted. This capital has

an embryonic and generative function since it constitutes the capacity of people to deal with

others, something that requires a level of self-consciousness (Carrilo & Guajardo, 2015). The

personal identity represents the sum of characteristics that distinguishes one person from

another and that constitutes the basis for an individual's ability to create social relationships

within the community. In other words, interaction emerges from the different personal

identities and social relationships are the consequence, these, in turn, underlie the

development of communities. These relationships also generate a level of social support that

stimulates the sense of belonging and an identity consciousness in the members of the

community in question (García & Herrero, 2006, Sanders et al. 1999).

The intelligence capital represents the capacity of the society in identifying answers to

understand its elements of value, and the capacity to develop quality interactions with all

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significant internal and external agents (Fachinelli et al. 2015). It has the specific function of

aligning the other capitals once it recognizes the elements and after then it pursues the

extraction of value for the individuals of a society (Olavarrieta & Carrillo, 2015). In other

words, intelligence capital concerns the process of intelligence gathering, sense making,

association, and actions that result in an adequate interpretation of facts and context in

order to proceed with an assertive action.

Within the capital systems, the financial capital has a deeper significance beyond that

of indicating a monetary value. It also says something about the capabilities of the society to

maximize its economic output (Correa & Guevara, 2015). The financial capital is considered

an articulator that represents the interaction between diverse value elements in the

dimensions of productivity within an economy (in the sense of savings, how much it is

capable of producing and how much surplus is generated). In addition to the financial

capital, the relational capital is also considered as an articulator since it is trying to

understand and describe the relationships that are established between the different

agents. It involves the level of ability to coexist with other members of the social groups and

communities for the purpose of stimulating development (Riviera & Carrillo, 2014, Garcia &

Martinez, 2015). The establishment of contacts, maintaining relationships and belonging to

social groups are elements of the relational capital and these define the levels of cohesion

within the endogenous perspective and the connectivity in an exogenous perspective.

The human capital is defined as the productive capacity and the ability to generate

income of individual people. This capital was already described as a generator of all human

intelligence (Marti, 2001), and as a collection of knowledge, abilities, competencies, and

other individual attributes relevant to economic activity (OCDE, 1999). In the capital system,

the key to defining human capital is an axiom: the human capital is intrinsic to an individual

person but it develops and is validated in the collective of the community (Gil & Carrillo

2015). The human capital is a conjuncture useful knowledge of each individual which

incorporates and generates value in the collective. The capital system human individual

capital refers to the capability to create conditions for the full biological and psychological

development of a person. It integrates the basis that can foster the training of individual

skills and performance in education environments, family, and production. The human

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collective capital refers to the capability to enhance the goal achievements potential of its

constituent communities (Garcia, 2012; Leal & Garcia, 2012, Fachinelli et al. 2015)

The instrumental capital is the collection of tools both technological and

methodological which the human capital requires to realize it's work with that achieve the

objectives pursued to consequently further develop them (Valerio, 2015) This capital is

composed of all the tools that facilitate the generation of value for companies, communities,

and societies. The instrumental capital consists of physically based means of production

through which other capitals leverage their value generation capability to take advantage of

the location to build and renew a world-class physical, geographical, environmental, and

urban infrastructure. The intangible instrumental capital is a set of knowledge-based means

of production through which other capitals leverage their value generation capacity. It

represents a capability to transfer knowledge and foster innovation in all major areas of city

life.

3. METHOD

To evaluate the perception of young citizens on the key dimensions of KBD organized

in the categories of the capital system, a seven-points Likert scale was developed with 59

self-report items. The scale construction occurred from the literature review following the

principles suggested by Churchill (1979), Malhotra (2010) and Hair et al. (2013). The 59 items

were based on the principles of capital systems: Identity capital (8 items), Intelligence capital

(3 items), Relational capital (24 items), Financial and Investment capital (3 items), Human

individual capital (6 items) Human collective capital (6 items), Instrumental material capital

(4 items), Instrumental intangible capital (5 items). The items were simultaneously evaluated

to reach a common goal, which is to construct the evaluation itself (Malhotra, 2010;

Rossiter, 2002). The 59 items were submitted to expert analysis to confirm the definition of

the phenomenon observed (DeVellis, 1991). After the instrument was applied to 10 students

of graduation courses to verify the form of presentation and the adopted language. After

minor adjustments, the data collection instrument was in a condition to be applied to the

sample of 300 students from 26 cities in southern Brazil.

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4. RESULTS AND ANALYSIS

The respondents of the research are mainly young students (67.8% - between 17 and

25 years), with income between 1 and 6 minimum salaries39 (39.5% - between 1 and 3

minimum salaries and 33.8% between 4 and 6 minimum salaries). The respondents are

mostly employees in the industry sector (70.1%) in the period in which they are not in class.

For data analysis of the univariate and multivariate technique were adopted. Univariate

normality was performed analyzing the skewness and kurtosis of each item. This analysis did

not indicate items with undesired behavior, and all were maintained.

Further, the exploratory factor analysis was performed for each of the capital, where

items whose commonalities had values below 0,5 were eliminated (HAIR et al., 2013). The

generation process of the factors was repeated until it reached a final model for each

capital. The quality of model adjustment was analyzed by Bartlett's test of sphericity (Hair et

al., 2013). To analyze the adequacy of the sample adopted the measure of Kaiser-Mayer-Olin

(KMO). High values for the KMO indicate that the factor analysis is appropriate, being higher

than 0.5 until 1 (nearest of 1 score indicates the greater the adequacy of the sample)

(Malhotra, 2010). The determination of the number of factors was performed using the

eigenvalue criterion greater than 1.0 and the use of the technique of principal components

with varimax rotation (Hair et al., 2013). Then, capitals were subjected to analysis of

reliability by the reliability of alternative forms, test, and retest regarding reliability, half-

and-half and internal consistency (Hair et al., 2013). The Cronbach alpha coefficient was

used to measure the internal consistency of the scale, calculated for each of the construct

dimensions separately. A scale whose items have a low value of the alpha coefficient

indicates to be a "weak" scale capture of the construct. On the other side, a scale with a high

value of the alpha coefficient indicates great consistency between items analyzing the

construct. The result is shown below in Table 1.

39 Brazilian minimum salary is R$ 880 or approximately U$ 265/month (june, 2016).

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Table 1 - Capitals, Itens, Kmo, Bartlett’s, Factors, Cronbach’s Alpha

Capital Initial

items

Remaining

items KMO Bartlett

Number

of

factors

% Cronbach’s

α

Identity capital 8 7 0,640 0,000 3 66,8% 0,629

Intelligence capital 3 3 0,621 0,000 1 58,4% 0,630

Relational capital 24 18 0,760 0,000 6 65,3% 0,726

Financial and investiment

capital

3 2 0,500 0,000 1 61,7% 0,380

Human individual capital 6 3 0,645 0,000 1 61,3% 0,683

Human collective capital 6 3 0,720 0,000 1 82,3% 0,893

Instrumental-material capital 4 2 0,500 0,000 1 65,1% 0,463

Instrumental-intangible

capital.

5 5 0,680 0,000 2 64,4% 0,667

The values of KMO and Cronbach’s Alpha indicate that, in general, there is a good fit

of the scales of capital. However, financial and investment capital, and instrumental-

material capital were made up of only two items, resulting in low setting rates. This fact

allows us to state that these two capitals should be better defined and analyzed in future

studies. Furthermore, identity capital, relational capital, and instrumental-intangible capital

presented factor loadings in more than one factor, indicating that underlies the capital there

is more than one dimension. The items for each capital and its constitution are described in

Table 2. The items are arranged according to their importance in the factor in decreasing

order.

Table 2 – Capitals and items

Capital Dimensions Itens

IDEN

TITY

Distinctive

48. Geographical location of my city favors the development of the

productive sectors that are installed here (industry, trade, services, tourism).

49. Aspects such as soil, topography and climate are the basis for the

development of productive sectors of my city.

57. The ethnic diversity of my city (people of different races and/or different

countries) promotes learning other values and cultures.

01. The culture inherited from our ancestors formed the identity of my city.

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02. The culture elements such as architecture, traditions, folklore, typical

products, historical profile make the city I live a different and unique place.

Integrative 06. I feel my community/neighborhood as something mine.

03. I identify myself with my community/neighborhood.

INTE

LLI

GEN

CE Knowing

10. I know what is being made for the future of my city.

11. I realized that the government of my city develops strategic plans for

medium and long term.

19. I know the data of my city (i.e. GDP, HDI, unemployment).

RELA

TIO

NAL

Life satisfaction

30. I am satisfied with my life.

28. In many ways my life is close to ideal.

29. My life conditions are excellent.

31. So far I have gotten the important things I want for my life.

Home Competency

40. Usually I do house cleaning.

41. Usually I prepare meals at home

38. Usually I go daily purchases of home (i.e. bakery, groceries, market)

Social Integration

35. When I'm in leisure activities, I am usually accompanied by friends or

relatives.

34. I visit friends and relatives at least once a week

36. I have one (or more than one) best friend who I can trust.

12. I freely participate in organized and unpaid associations, NGOs,

communities or groups that generate a positive social impact.

13. I financially help needy people, associations, communities, projects or

other non-profit entities (i.e., hospitals, social service organization, sports

clubs or interest groups, churches, trade unions, political parties, etc.).

14. I participate in a community that gives creative responses to certain

needs or social problems

Productive Activity

46. Considering my work activities and study, I am occupied all day.

37. Usually I have activities outside home every day.

41. Usually I take care of my finances (i.e. going to the bank or pay bills).

Safety 25. I feel safe to walk alone at night (a) in my town or in my neighborhood.

04. My opinions are well received in my community/neighborhood.

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FIN

ANCI

AL/ I

NVE

STM

ETN

T

Saving and Job

23. I (alone or with my family) can save a bit of my income every month.

24. I feel safe about my job considering that the risk of losing their jobs is

low.

HUM

AN

Indi

vidu

al

Awareness acting

16. I participate in public debates and issue political judgments explicit and

respectful manner from information I get from the press, my network of

friends or participating in organized lectures and discussions.

17. I can articulate and explain the social and political situation of my

country, state, city or community based on my knowledge of laws and rules,

and my knowledge of political and social aspects that correspond to the

situation.

18. I know human rights, working and positioning myself according to them.

HUM

AN

Colle

ctiv

e

Social Support

43. I collaborate with organizations and my community or neighborhood

associations.

44. I participate in social activities in my community or neighborhood.

45. I accept the calls of support that are made in my community or

neighborhood.

INST

RUM

ENTA

L

Mat

eria

l

Distinctive Features

50. My city is favored by its geographical and physical space characteristics in

relation to others that have the same type of industry and services we have

here.

51. My city is careful with the quality of water and air.

INST

RUM

ENTA

L

Inta

gibl

e

Citizen

Participation

Features

54. I participate in groups that freely organize themselves to discuss ideas on

issues that are common to all.

55. I create, share and apply my knowledge in my group or community and

realize the benefits.

15. I promote interactions between people who do not know and who have

common interests and or complementary visions.

Citizen Connection 56. I easily connect with other people and with my community because I

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Features participate in social networks and have the means to an agile communication

(smartphone, internet, wi-fi).

59. In my city, citizen initiatives that transform the social reality are well

received by public officials.

To analyze the relevance of scale for comparative studies, the ANOVA technique was

used for the analysis of the means of each factor by city size. We classified the 26

municipalities in 3 groups. Group 1: cities with a population of approximately 450,000

inhabitants (105 respondents); Group 2: cities with approximately 450,000 inhabitants (99

respondents) and Group 3: cities with up to 50 000 inhabitants (94 respondents). The results

indicated a significant difference in mean cities the significance level of 0.05 in the relational

capital (competency and safety home), intelligence capital, finance and investment capital,

human collective capital and instrumental-intangible capital (citizen connection). However,

there is no significant difference for the other capital. In these analyses, the relational capital

(competency home) showed higher and average (for respondents of largest city). In

intelligence capital, finance and investment capital, human collective capital and

instrumental intangible capital (citizen connection) the highest average were observed in the

respondents group of small towns.

5. DISCUSSION

The capital system is an analysis framework which makes possible to understand the

spectrum of the values that a society has access in order to develop. As a system, it

expresses the different functions of each capital, the complementarity between then and it

operation as a whole (Carrilo et al. 2014). The capital system has already been validated as a

genuine accounting system which facilitates an integration from single data to composed

indicators (Meza & Garza, 2012; Garcia, 2012; Leal & Garcia, 2012, Garza, 2014). Our study

aims at testing the structural consistency of the model and its capacity to describe functional

reactions between dimensions of value from the perspective of the citizen. For this, it was

necessary to construct a scale derived from the general constructs of each capital. Since

each capital expresses a differentiated function and the system expresses complementarity

between them, in order to construct the scale, we searched to identify the principal

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dimensions of the construct underlining each capital. We identified in this process earlier

studies in the dimensions of the sentiment of belonging, life satisfaction, social integration.

The other dimensions adopted were found in the studies of distinctive and generative

identity (Carrillo & Guajardo, 2015) intelligence gathering and sense making (Olavarrieta &

Carrillo, 2014) Human Capital (Gil & Carrillo 2015, Marti 2001); Productive capital (Valerio,

2015) knowledge-citizenship (Garcia & Martinez, 2015). Results of the factorial analysis

indicated that this procedure was valid. We carried out a factorial exploratory analysis for

each of the capitals Items whose commonalities presented values below the 0.5 were

eliminated. The process of factors generation was repeated until the final model was

achieved for each capital. What was relevant to observe in results of this procedure was that

in the final model the questions that were not eliminated and thus remain because they

scored above the 0.5 were those related to life satisfaction, community, social integration

and knowledge citizenship.

The behavior of the data validates such dimensions as constructs associated to the

respective capitals. This represents an advance in terms of the structural consistency of the

model and its capacity to describe functional reactions between dimensions of value.

Although the results of the study indicate that the scale has favorable psychometric

properties, we consider that the items of the scale could be increased to measure all

capitals. Other recommendations for future studies are a better and more adequate sample

population as well as a more symmetric analysis of the scale. These could minimize the

possible undesirable behavior of the data. This needs to be considered for future studies

when planning to integrate new items regarding Intelligence capital, Financial capital, and

Instrumental-intangible capital

6. CONCLUSION

The objective of this study was to construct and validate a scale in order to measure

the perception that the younger part of the citizenship has about the inherent concepts of

each individual capital system category. The study provides additional evidence for the

validity of the constructed scale showing its factor structure. In this respect, it is important

to consider that the constructs which we adopted from other empirical studies have been

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validated for different purposes (see Sander et al, 1999, Garcia & Herrero, 2004 Diener et al,

1985 Garcia & Martinez, 2015). Thus, we consider our study among the pioneering research

regarding the assessment from the perspective of citizens about the capital system as a

whole. Our study showed that the identification of an integrated value perspective of the

social life from the point of view of young citizens is possible. Statistical analysis showed that

the scale succeeded in measuring the constructs as the study attempted to show and thus

indicates the desirability to follow up with a deeper study in order to expand then the

potential use of the scale. In other words, the search for commonly accepted assessment

methods and metrics as part of the research agenda of knowledge cities may also consider

the citizen’s perspective. In our study, we considered especially the young people because

they represent a base of date and tendencies which can be interpreted as a view into the

future. If we consider the capital system on the dimensions that comprise the set of values

that counts for society to grow and prosper, to evaluate the perception of young people

becomes an essential condition for their development. With the advances obtained in this

study, future research may compare the results obtained with the implementation of the

capital system taxonomy from the indicators of a particular city with the perception of the

citizens about the constructs that underlie the same capital system.

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